Gold ETF Inflows Slow in March Amid Silver ETF Outflows

Gold ETFs Witness Moderation in Inflows, Silver ETFs Continue to See Outflows

Gold exchange-traded funds (ETFs) in India experienced a decline in inflows in March, while gold ETF assets under management (AUM) also decreased, according to the latest data from the Association of Mutual Funds in India (AMFI). Silver ETFs continued to see significant outflows during the same period.

Gold ETF Inflows Decline by 56.9% in March

Gold ETFs recorded net inflows of Rs 2,265.68 crore in March, a 56.9% month-on-month decline from the Rs 5,254.95 crore seen in February. This decline follows a period of strong inflows in January, when over Rs 24,000 crore was invested in gold ETFs. Despite the positive inflows, gold ETF AUM decreased from Rs 1.79 lakh crore to Rs 1.71 lakh crore, reflecting the impact of falling gold prices during the month.

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Silver ETFs Continue to See Outflows

Silver ETFs saw net outflows of Rs 683.9 crore in March, as volatility in prices led investors to reduce exposure. The segment's AUM fell from around Rs 91,975 crore to Rs 79,805 crore, implying a nearly Rs 12,000 crore erosion, largely on account of mark-to-market losses.

Market Analyst Weighs In

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According to Nehal Meshram, Senior Analyst at Morningstar Investment Research India, the slower inflows in March likely reflect a combination of normalization after a very strong start to the year and some moderation in fresh allocations. Despite this, March's positive flows suggest that gold continues to retain investor interest as a diversification tool amid market uncertainty and macro volatility.

Developing Story

This is a developing story, and further updates will be provided as more information becomes available.